UK Landlord Forum / Life

Hello All
Thanks for reading this post and sorry it's not too long.
I have a tenant who has not paid last 4 months rent soon to be 5 months (has paid for last 18 months). The tenancy agreement is until 22nd Aug 2017. We were in contact with tenant but now he does not answer any of our texts/emails. I have legal cover with the insurance co who have issued a Section 21 on 8th July. They will however not support us with issuing a Section 8 as although I went through an Estate Agent to find the tenant I protected the deposit of £2,175. However although I have an email from the DPS saying they received the funds (email dated within the 30 days) I obviously didn't confirm or do something that I should have. Therefore the Estate Agent protected it but it was outside of the 30 days (3months late). I am now in somewhat of a dilemma as I need the rent arrears (currently paying 2 mortgages etc). If I continue with the Section 21through the insurance company I may get him out in Sep (however I think he will stay until bailiffs get involved). Therefore I could be looking at 10 months rent arrears and would have to take him to court separately (not even sure how yet) with the threat that he cld always take me to court for the 3/4months unprotected deposit and claim compensation.
If I decide to do the Section 8 I would have to do this and the insurance co says they would stop the Section 21. I obviously run the risk of the courts giving him 3* deposit for compensation and therefore I would not have 2months rent arrears and I would ultimately loose the Section 8. However I would hope that the courts would see that the deposit was protected and was for 21 months of the 24 month tenancy and I do have the email.
This is my first property that I have rented and only did it as I wanted to buy my current house and had to be chain free to buy it. I am inexperienced and have obviously made the mistake of not protecting the deposit within the 30days which could cost me huge amounts of money.

Any advise would be really appreciated as I am at my wits end and now.
Thanks so much for reading.

Your summing-up is mostly correct, I'm afraid. If you are sued for the failure to protect the deposit properly (whatever the issue was, but it looks like timing) then you will lose. There is no point in you hoping that a Court will see anything - it's a black-and-white case for them, they must find in favour of the Tenant because you failed to do what you were supposed to. The only leeway the Court has is in the scale of the penalty... be it 1x or 3x... and that could be where your hope lies. If you are not a big-time Landlord and you're not a repeat offender and you corrected the issue as soon as you became aware, then you'd hope for 1x, but it still can't be 0x.

So, I think the risk of 3x is very, very low... but don't hope for nothing if it goes there.

I know communication is not happening... but I would do my utmost to discuss options with the Tenant. Do you even know why they're not paying? Have they lost their job? Do they feel like they can just get away with it (surely they'd not pay for 18 months if so)? Has there been a relationship breakdown? Are there repair issues that they're concerned about and withholding rent in lieu of? In the end you might wish to consider some kind of incentive for them to find a new place... maybe help with a new deposit and removal costs... the legal route is neither quick, nor cheap... but you must be v. wary of them having you by the short-and-curlies and taking further advantage.

Thx for the reply. Tenant said he had financial difficulties. He split with partner in Nov, however he's still in work and earns lots of money so easily should be able to pay rent by himself. There has been no relationship breakdown and the house is in good working order. So no idea really why he has stopped paying apart from fact he said he has financial difficulties.
He really shouldn't be allowed to get away with this and once we get rid of him I assume he will do the same to another landlord, which is terrible.
I will take your advise and try and contact tenant to discuss further.

The last you want is to be on the receiving-end of a claim regarding deposit protection... because you are guilty (a bit of a harsh word, there) and will lose.